As a PM, I can plan procurement

Any work package can be outsourced under contract, or any other kind of agreement. This part of the project will be executed by a third party (contractor, other department, or other team) with their own resources. Make or buy decisions are key in project management because execution will be totally different in one case or the other.

PMPeople allows to connect any work package to a procurement project:

If the project manager (PM) is a Stakeholder (SH) of the procurement project, then PM can control procurement effectively. The procurement project can belong to another organization, another business unit, or the same business unit than the prime project.

Project managers, or any other management role (PMA, PMO, PfM, PgM), can plan procurement at PROCUREMENT > Contract Planning:

Procurement projects on the right panel can be added by clicking the “plus” icon [+]. They can be deleted by opening the details and clicking the “Delete” button.

A procurement is detailed as follows:

Contract Title: The name used for the procurement project
Description: A short description for the procurement project
Work Package: The work package under procurement.

Project managers, or any other management role (PMA, PMO, PfM, PgM), can plan payment at PROCUREMENT-> CONTRACT PLANNING-> PLAN PAYMENTS by clicking on the arrow-down icon.
Click on Plus [+] icon to add a payment.

Binding between the work package and the procurement project, if this project is also managed with PMPeople, can be done at PROCUREMENT > Connect Contractors: Project manager (PM) can bind the procurement to any project he has access as a Stakeholder (SH):

Project managers, or any other management role (PMA, PMO, PfM, PgM), can plan payment at PROCUREMENT-> CONNECT CONTRACTORS-> PLAN PAYMENTS by clicking on the arrow-down icon.
Click on Plus [+] icon to add a payment.

A Plan Payment is detailed as follows :

ID : Unique identifier automatically generated for each procurement record.
Title : Short name or label describing the procurement item or service.
Amount : Total monetary value of the procurement as per the contract or invoice.
Invoice date : Date of submission of invoice.
Status : Current state of the procurement (e.g.,Payment Planned, Payment In Process)
Status date : Date of record creation or update. Date on which the procurement status was last updated.
Client Organization : Identifier of the buyer organization. The organization requesting or funding the procurement.
Client Project : Identifier of the buyer’s project.
Contract title : Name or description of the contract under which procurement is managed.
Contractor Organization : Identifier of the seller organization.
Contractor Project : Identifier of the seller’s project.
Currency : Currency type in which the procurement amount is defined (e.g., USD, INR, EUR).
Legal Number : Official legal reference number (e.g., invoice number, tax ID)
Amount to pay : Number for invoice amount to pay, actually (maybe after conversion, discount, penalty, etc.).
Currency to pay : Currency for invoice amount to pay.
Purchase order : Alphanumeric to identify the contract.
Due date : Date of due payment of invoice.
Description : Detailed explanation of the procurement or purpose.
Payee’s Account Number : Bank account number or payment account of the seller for fund transfer.

Project managers, or any other management role (PMA, PMO, PfM, PgM), can close the contract at PROCUREMENT-> Contract Administration.

After closing the contract, users are not able to manage payments and are not able to update ‘Summary of Contractor’s performance’.

Project managers, or any other management role (PMA, PMO, PfM, PgM), can open the procurement at PROCUREMENT-> Contract Administration.

After opening the procurement, users are able to manage payments and are able to update ‘Summary of Contractor’s performance’.

Project managers, or any other management role (PMA, PMO, PfM, PgM), can control payments at PROCUREMENT-> Contract Administration by clicking on the arrow-down icon.
Click on Plus [+] icon to add a payment.

A Control Payment is detailed as follows :

ID : Unique identifier automatically generated for each procurement record.
Title : Short name or label describing the procurement item or service.
Amount : Total monetary value of the procurement as per the contract or invoice.
Invoice date : Date of submission of invoice.
Status : Current state of the procurement (e.g.,Payment Planned, Payment In Process)
Status date : Date of record creation or update. Date on which the procurement status was last updated.
Client Organization : Identifier of the buyer organization. The organization requesting or funding the procurement.
Client Project : Identifier of the buyer’s project.
Contract title : Name or description of the contract under which procurement is managed.
Contractor Organization : Identifier of the seller organization.
Contractor Project : Identifier of the seller’s project.
Currency : Currency type in which the procurement amount is defined (e.g., USD, INR, EUR).
Legal Number : Official legal reference number (e.g., invoice number, tax ID)
Amount to pay : Number for invoice amount to pay, actually (maybe after conversion, discount, penalty, etc.).
Currency to pay : Currency for invoice amount to pay.
Purchase order : Alphanumeric to identify the contract.
Due date : Date of due payment of invoice.
Description : Detailed explanation of the procurement or purpose.
Payee’s Account Number : Bank account number or payment account of the seller for fund transfer.

The contractor can only see payment planning at PLAN-> Plan Finance-> Invoices or CONTROL-> Control Finance-> Invoices if ‘Show Payment Planning to Contractor?’ toggle is enabled.

The Project manager (PM) can click the link at section [Access as a Stakeholder to:] to directly access the procurement project as a Stakeholder (SH).

Procurement details can also be read with the mobile application. Once they have entered any organization (for instance, DEMO PMPeople), they need to select the role Project Manager, then the project and finally, hit the menu option Procurement > Connect Contractors.

Mobile application allows direct access as a Stakeholder (SH) to the procurement project, following the link at section [Access as a Stakeholder to].

Frequently Asked Questions

Who can plan procurement in PMPeople?

Project Managers (PM) and other management roles (PMA, PMO, PfM, PgM) can plan procurement at PROCUREMENT > Contract Planning. If the PM is a Stakeholder (SH) of the procurement project they can also control it directly.

How do I connect a work package to a procurement project?

Add a procurement project from the right panel (click [+]) and specify Contract Title, Description and Work Package. To bind the work package to a procurement project that is also managed in PMPeople, use PROCUREMENT > Connect Contractors and select any project you have access to as a Stakeholder (SH).

Can I view and manage procurement from the mobile app?

Yes. In the mobile app, enter the organization (e.g., DEMO PMPeople), choose the Project Manager role, open the project and go to Procurement > Connect Contractors. Mobile also follows the Access as a Stakeholder link to open the procurement project directly.